Berlin-based Frequenz, a company that manages renewable energy production and procurement through AI, IoT and battery storage technologies, announced on Thursday that it has raised €13M in a Series A round of funding.
Frequenz says it will use the funds to accelerate the platform’s roll-out in Europe.
According to the company, the timing of the product is ideal given the recent increase in energy prices. The company says that corporate energy users will benefit from a more reliable energy supply, which powers an unprecedented grid consumption and a cost reduction of over 30 per cent.
Investors in this round
The round saw participation from new investor SET Ventures, an Amsterdam-based venture fund that has also joined Frequenz’s board. The fund claims to have built a track record of investing in digital technologies for a carbon-free energy system since 2007.
Till Stenzel, Venture Partner at SET Ventures and incoming Frequenz Advisory Board member, says, “Frequenz has developed a highly scalable solution that distils the huge complexity of operating microgrids into an easily understood and highly competitive commercial product. We are looking forward to working with the Frequenz team, which brings a fresh and pragmatic approach to the industry, transferring the learnings from managing and processing large data volumes in a separate industry to the energy world.”
Additional funding came from Payback founder Alexander Rittweger, as well as existing investor 468 Capital. The founding team of Frequenz, who previously built and exited a real-time trading business with Sociomantic, also invested several million Euros in this round.
Electricity procurement powered by AI on the edge
Founded in 2019 by Thomas Nicolai and Lars Kirchhoff, Frequenz’s solution employs artificial intelligence to forecast market pricing and individual energy usage. It then optimises user consumption and output by integrating assets like batteries and solar panels. This results in a decrease in grid electricity consumption and expenses, usually 30 per cent and above.
Additionally, it transforms inactive electricity consumers into active prosumers. Customers are therefore more independent from market instability because they not only consume but also create power. This further lowers electricity prices, procurement risks, and CO2 emissions.
The company claims to have successfully completed proof-of-concept initiatives with major partners, including grocery chains Edeka and Netto, over the past 18 months. Currently, it is being used at German Mittelstand businesses like Freudenberg and Göing.
The company says that these projects showcased and even surpassed expected savings targets, ultimately confirming the potential of Frequenz’s business model.